Crypto day trading strategies

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Learning crypto day trading strategies is a great way to earn a profit with cryptocurrency market. With the proper strategies and knowledge, you can take advantage of the volatility of cryptocurrency to profit. Before you start crypto day trading, however, there are a few things to make sure you know, including some great strategies.


Before you get started with crypto day trading, familiarize yourself with the requirements. Luckily, there are not many beyond common knowledge. You will need to own at least some cryptocurrency and have a trading platform in mind to use.

Technically, you can start day trading with any amount of cryptocurrency. That being said, your potential for profit increases as your investment increases.

Crypto day trading strategies

This is just a hypothetical example and is not investment advice.

The first thing to understand is that day trading is a high-risk approach to profiting from an asset. Never invest more than you can afford to lose.

Example Method

Research the latest charts to identify which cryptocurrencies have high volatility. In addition, medium-term price curves need to be upwards.
Aim for at least 5% daily volatility on average. Consider investing 5000 USD and creating a limit order to sell for 5050 USD. Make sure you protect your asset by placing a stop-loss order of 4750 USD.

Verify that this method works for the cryptocurrency you choose to day trade. Repeat as necessary.

Technical Analysis Basics

The most important thing to understand about technical analysis for your crypto trading strategies is how to read a candlestick chart.

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Thus, if you are considering a crypto investment, just buying and holding tokens is an excellent strategy. However, investors must remember that cryptocurrencies are highly speculative investments meaning just because their value increased in the past, it doesn’t mean it will continue to increase.

That said, for intraday traders, there are numerous strategies that they can follow. Here are a few:

1. High-Frequency Trading (HFT)

In the HFT strategy you benefit from the rapid price changes that occur on the order of seconds or fractions.
The frequency of trades in this strategy is in the dozens per second, which is quite impossible for a human trader to keep up with. The only way to use the HFT strategy is to use software known as a trading bot.

Crypto day trading strategies pdf

The matter to in day trade crypto has surged to record levels in recent months. The big casual swings in digital currencies are much higher than other asset classes providing a wealth of opportunities when day trade cryptos. But what is the best crypto exchange for day deal ? Most importantly, what are the best crypto sidereal day trade strategies ? In this ‘ Guide to Day Trading Crypto, ’ we answer these questions and more !

Best Crypto Day Trading Platform 2021 tilt

If you are looking for the best day trade platform for cryptocurrency, then read the quick list below.

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It is also called “intraday trading.” Day traders function on events that stir up short-term market moves and one of the popular techniques is news-based trading which includes economic statistics, corporate earnings, and more. Technical analysis is another popular day trading method.

Intraday trading can be a lucrative career but for that, you need well-planned strategies and a ton of experience. This doesn’t mean that novices can’t get started with crypto day trading, they can choose a strategy that suits them best and start small.
It is important to remember that even the most seasoned traders can slip up and book losses. They can even miscalculate their day trading crypto taxes as they have hundreds and sometimes thousands of transactions and one might slip through the cracks.

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The brokerage besides provides access to the eToro Exchange which provides institutional-grade algo trade capabilities with a broad suite of crypto assets and stablecoins to trade on, equally well as a alone set of tokenized assets . furthermore, you can access the eToro Money Crypto Wallet which allows you to buy, sell, shop, receive and remove over 120+ cryptocurrencies. The wallet besides gives you your own unlosable private cardinal and on-chain address. You can besides use the eToro staking service to earn more while you HODL .
With eToro, you can transact in physical cryptocurrency, angstrom well as derivatives such as CFDs ( Contracts for Difference ). This enables you to trade net income from rising and falling markets using leverage which amplifies your gains and losses .

Ethereum day trading strategies

It is also considered good practice to place your stop-loss below a previous low.

This strategy is a great, simple indicator of convergence and divergence between medium-term momentum and the short-term momentum, showing you when the price is accelerating in either direction, up- or downside.

An example of how this could be successfully executed is shown on a screenshot below:

A Confluence of RSI and MACD

The two most-used indicators – Relative Strength Index (RSI for short) and the Moving Average Convergence-Divergence indicator (MACD) can be proven very efficient when used together.

But in order to do so efficiently, you have to understand exactly how they work.

Bitcoin day trading strategies

However, you should ensure you’ve done plenty of research before deciding on which cryptocurrency to invest in. Once you’ve chosen a dependable crypto exchange, it’s time to deposit a starting capital and start your journey. In theory, it takes only a few dollars to invest, since most crypto exchanges have a minimum trade of $5 or $10, but you’ll still need an effective daytradingstrategyto succeed.

Crypto Day Trading Strategies

What’s the difference between trading and gambling? The answer is—an effective strategy. Day traders devise a winning strategy fund on research with well-laid plans. Depending on your competencies and the nature of the market, you can apply different day trading crypto strategies.


Crypto intraday trading strategies

It always depends on what happens in the crypto market currently, how you trade, which strategy you use and you can’t forget the crypto day trading taxes that affect your profits. The tax on day trading profits should never be overlooked because no matter how big of a profit you book, at the end of the day, you have to pay the day trading capital gains tax levied on you by the IRS.

You should also bear in mind that crypto markets are highly volatile. However, some coins can soar in value; Dogecoin for example.

Started as a joke, this meme-based coin skyrocketed from a fraction of a penny to over $0.25 within months i.e, billions of dollars in value. But the prices did come down and it is still considered highly volatile because it is easily mineable and people holding large amounts of Doge can sell them when opportunity strikes.

Crypto day trading strategy

Of course, you can also sign up for market signals based on indicators recommended by other traders on TradingView.

With technical indicators, you can trade manually within our multi-exchange trading interface. You can also run an automated trading bot like MACD or Bollinger Bands and take advantage of both technical indicators and high-frequency trading.

Sentiment-Based Trading

Sentiment-based trading is another popular day trading strategy, using data sourced from public information like news sources, social media media outlets, or even Google search trends to find entry or exit points for their trades.

For example, Elon Musk tweets about Dogecoin. You could set up notifications for the moment that type of tweet goes live, with the potential of getting ahead of the game.

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Open an Account in a Suitable Trading Exchange

The next step is to open an account in a tradingexchange that meets your daytradingneeds. The crypto markets are fragmented, and trading operates under many different rules worldwide, meaning you need to choose a crypto trading platform that your country supports.

Also, to ensure a smooth trading exchange, you should consider:

  • User Experience
  • Commissions and Fees
  • Security and Authenticity
  • Number of Supported Cryptos
  • Funding Methods Supported

Since Bitcoin is the best cryptocurrency to invest in right now, we advise you to choose Bitcoin day trading.

3. Deposit an Initial Investment Capital

Investing in cryptocurrency takes just five minutes from start to finish.

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